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WPG (TSE:3702) Reports Its Third-Quarter Consolidated Sales and Net Income, Both Continue to Hit Record Highs; Third-Quarter EPS Was NT$0.94 and YTD EPS Grew 19% to NT$2.69.

 2014-11-04

WPG (TSE:3702) Reports Its Third-Quarter Consolidated Sales and Net Income, Both Continue to Hit Record Highs; Third-Quarter EPS Was NT$0.94 and YTD EPS Grew 19% to NT$2.69.

 

2014/11/4

 

Benefited from increased markets demand combined with growing shipments of communication-related components, industrial electronics, and cloud applications, WPG, the largest distributor of semiconductor components in Asia, announced Its third-quarter consolidated sales and net income, both set record high for two consecutive quarters. Consolidated sales reached NT$119.349 billion, gross margin was 4.45%. Under effective expense control, operating expenses to sales ratio declined continuously to 2.69%. Third-quarter operating Income reached NT$2.099 billion, increased 18% year over year, Operating margin was 1.76%. Net income increased 2.9% sequentially to NT$1.555 billion and increased 16.6% year over year. Unaudited EPS was NT$0.94 for third Quarter.

 

Consolidated sales of first three quarters was NT$335.396 billion, Operating income was NT$6.163 billion, net income was NT$4.461 billion , represented 13.7%, 27.1% and 18.9% double-digit growth year over year . EPS was NT$2.69 per share.

 

The profit growth has been delivered by domestic demand of emerging markets. Contribution of 3C products such as mid to high-end smart phone, tablet, wireless broadband and NB were continued growing. Non-3C segments’ contribution such as automobile, medical and industrial electronics remained healthy. With increased profit and improving operating efficiency, Key financial indices: Return on Working Capital (ROWC) and ROE was 10.3% and 15.3% respectively.

 

Management guides the total sales of fourth quarter 2014 will be between NT$107.5 billion and NT$112.5 billion, with the gross margin in the range of 4.4%~4.7% and the operating margin between 1.5%~1.7%.

 

In the third quarter of 2014, 78 application solutions were provided in the fields of Security (14), Industrial (13), cell phone / communication (11), Lighting (11), Medical(10), automotive (9), Power (4), MB (3), computer (including Tablet)/ peripheral (2) and MID (1), focusing on applications of IP Camera, lithium battery, smart phone, LED dimming, telemedicine, wearable medical device,  multi-functional door zone drive, rain-sensing wipers, LED lighting, MB, NB, and 4G LTE chip.

 Table: WPG Holdings Consolidated Management Financials for the quater ended September 30, 2014. (in brief)

Units:NT$ million

Income Statement (2014/1/1~2014/9/30)    Balance Sheet (2014/9/30)

Item

Amount

 

Item

Amount

Operating revenues

335,396

 

Current Assets

144,442

Cost of Goods Sold

(319,971)

 

Accounts receivables

80,309

Gross Profit

15,426

 

Inventories

47,723

Operating Expenses

(9,263)

 

Other assets

13,679

Operating income

6,163

 

Total Assets

158,122

Non-op Expenses

(689)

 

Current Liabilities

102,719

Profit Before Tax

5,474

 

Current Borrowing

49,366

Tax

(1,003)

 

Accounts payables

46,446

Minority & Others

(9)

 

LT Liabilities

12,940

Profit After tax

4,461

 

Total Liabilities

116,418

EPS (Note)

2.69

 

Common Stock

16,557

Net book value per share (Note)

25.15

 

Total Equity

41,703

Note:Based on weighted average outstanding shares.

 

Cash flows (2014/1/1~2014/9/30)

Item

Amount

Income before Income Tax

5,474

Change in NWC

(13,395)

Operating cash inflow /(outflow)

(7,366)

Investment cash inflow /(outflow)

125

Change in Financial Debt

11,238

Financing cash inflow /(outflow)

7,428

Cumulative translation adjustments

943

Net Cash

1,130

Beginning cash balance

9,459

Ending cash balance

10,589

 

IR contacts:Cliff Yuan/ Zoe Peng

Tel:886-2-7712-5268 / 886-2-7712-5262

Email address:  ir@WPGholdings.com

Corporate website:  www.WPGholdings.com